Stock Name: Yamada
Company Name: YAMADA GREEN RESOURCES LIMITED
DMG & Partners Research in an Aug 16 research report says: "2Q11 net profit of RMB7.4 million (+12% y-o-y; -89% q-o-q) was above our RMB5 million projection amid a seasonally low quarter as a result of higher 2Q revenue of RMB55 million (our estimate: RMB48 million) with RMB5 million maiden contribution from black fungus.
"With new farmland acquisition of 840mu in Jun11, we revise our farmland assumption up to 5,134mu, resulting in higher FY11F-FY12F earnings estimates of RMB146 million-RMB193 million respectively. However, we reduce our target multiple to 4.5x FY11F P/E on the back of weak sentiment towards small cap S-Chips counters.
"We continue to expect strong 4Q11 net profit growth of 78% to RMB72 million to provide the next upside catalyst, though share price is likely to remain flattish during a seasonally low-key 3Q. Target price reduce to 32 cents. MAINTAIN BUY."
Company Name: YAMADA GREEN RESOURCES LIMITED
| Research House: DMG | Price Call: BUY | Target Price: 0.32 |
DMG & Partners Research in an Aug 16 research report says: "2Q11 net profit of RMB7.4 million (+12% y-o-y; -89% q-o-q) was above our RMB5 million projection amid a seasonally low quarter as a result of higher 2Q revenue of RMB55 million (our estimate: RMB48 million) with RMB5 million maiden contribution from black fungus.
"With new farmland acquisition of 840mu in Jun11, we revise our farmland assumption up to 5,134mu, resulting in higher FY11F-FY12F earnings estimates of RMB146 million-RMB193 million respectively. However, we reduce our target multiple to 4.5x FY11F P/E on the back of weak sentiment towards small cap S-Chips counters.
"We continue to expect strong 4Q11 net profit growth of 78% to RMB72 million to provide the next upside catalyst, though share price is likely to remain flattish during a seasonally low-key 3Q. Target price reduce to 32 cents. MAINTAIN BUY."
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